Is investment in debt mutual fund for short term goal is beneficial in current market scenario where bond yield is higher
Bond investments are subject to multiple risks including market risks. Market risk means that the market value of your bonds is lower than what you paid for it – which is what will happen if yields rise. If yields fall, your bonds will actually rise in value.
Having said that, if you are investing for a short-term goal, please ensure your debt mutual fund has a similar or shorter average tenure, or duration. And that it doesn’t take on undue credit risk.
You might want to watch this video https://youtu.be/5g-g4dsS8vI